November 20, 2017

The Federal Reserve Board, Federal Deposit Insurance Corporation, and Office of the Comptroller of the Currency are adopting a final rule, effective Jan. 1, 2018, to extend the regulatory capital treatment applicable during 2017 under the regulatory capital rules for certain items, including regulatory capital deductions, risk weights, and certain minority interest limitations. The final rule extends transition provisions in the agencies' capital rules that phase in certain requirements over several years to give banking organizations time to adjust and adapt to the new requirements.

The relief provided under the final rule applies to nonadvanced approaches banking organizations--organizations not subject to the capital rules' advanced approaches. Advanced approaches banking organizations continue to be subject to the transition provisions established by the capital rules for the items affected by the final rule and must apply the capital rules' fully phased-in treatment for these capital items beginning Jan. 1, 2018.